-- Posted Monday, 25 July 2011 | | Disqus
New York gold closed at $1,600 of Friday. When U.S. politicians failed to resolve their debt crises the gold price started to run with the silver price in hot pursuit. At the London morning Fix gold Fixed at $1,618.5 and unremarkably in the euro at €1,126.62 with the €1: $1.4392.
After the Fix it continued its rise through $1,620 and higher
Just ahead of New York’s opening, gold continued to rise to stand at $1,619.10 alongside a dollar standing at €1: $1.4370. Gold in the euro was at €1,126.80.
After Fixing at $39.67 on Friday today saw silver Fix at $40.78 then hold just below that at $40.68 in London’s morning. Silver and gold are now riding in tandem…
Gold - Very Short-term
We expect gold show a stronger bias in New York today.
Silver – Very Short-term
We expect silver to show a stronger bias in New York today.
Silver & Gold Price Drivers
Markets were expecting a ‘debt-ceiling’ deal by London’s morning and it didn’t come. At $1,600, the markets priced in a deal between Republicans and Democrats. The game now being played is showing the world that the U.S. rates political advantage over sound finance. Mr. Timothy Geithner and Mr. Bernanke appear to be the only good sense voices out there. Right now they seem to be shouting in the Wilderness?
Political drama and spin is not the right basis for an investment. Traders are likely to work the volatility this week, clipping profits on any move. Longer-term investors look further ahead, so beware of the hype this week! The tide of the market will not be affected by this froth, it will move ahead whichever way the wind blows.
What few are factoring in, yet, is the possibility that a deal will not be done and politicians will allow a default. That will be like cracking a crystal goblet. It can be repaired but the dull sound when you tap it will stay. The U.S. will have damaged its name, irreparably.
Investors should take note that even though a Greek bailout was done it did not bring any lasting effect to the markets and certainly not to the gold and silver markets, which have started the week at record highs again! A glance across to the dollar and the euro show them at very weak levels against the Yen and the Swiss Franc showing them both falling. Note too, that Greek debt has been downgraded three notches yet again. The entire last month has seen damage done to the euro and the dollar that has changed the monetary world for good. For investors to really profit from the gold and silver markets more is needed than a short-term focus on the some of the symptoms of why the gold price is rising. The Gold Forecaster and Silver Forecaster discuss these sorts of points making them a “must-read” for all who want to understand why the gold and silver prices are moving as they are and why.] Subscribe at www.GoldForecaster.com or for silver at www.SilverForecaster.com
Be ready for a volatile and frightening week in the financial world. Certainly gold and silver will prove to be a hiding place in this storm!
Gold Prices in different currencies which highlight currency moves [We add the Swiss Franc today]:
Swiss Franc – Today: Sf1,302.73: 1 ounce of gold. Friday: Sf1,308.31: 1 ounce of gold.
U.S. $ - Today: $1,619.10: 1 ounce of gold. Friday: $1,597.45: 1 ounce of gold.
Euro - Today: €1,126.8: 1 ounce of gold. Friday: €1,110.65: 1 ounce of gold.
India –Today: Rs. 71,888.04: 1 ounce of gold. Friday: Rs.70,918.07: 1 ounce of gold.
Julian D.W. Phillips for the Gold & Silver Forecasters
-- Posted Monday, 25 July 2011 | Digg This Article | Source: GoldSeek.com